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Finance ACT – 2003

Arrangement of Sections

1. Short title.


Embarkation Levy

2. Embarkation Levy.

3. Operator to collect embarkation levy.

4. Embarkation levy to be paid to Competent Authority by the operator.

5. Competent Authority to credit the Consolidated Fund.

6. Operator to furnish required information.

7. Records.

8. Returns.

9. Verification of correctness of information by the Competent Authority.

10. Interpretation.


Tourism Development Levy

11. Imposition of levy on institutions, licensed under Tourism Development Act and Tourism Act.

12. Method of payment of Tourism Development Levy.

13. Definition of Turnover.


The Levy on Rooms of Five Star Hotels

13A. Payment of levy by five star hotels where room charges are less than one hundred and twenty five United States Dollars.


Repeal of the Embarkation Tax Act, No 19, Of 1961 and Amendment of Air Navigation Act

14. Repeal of Act, No. 19 of 1961.

15. Transitional provisions.

16. Amendment of section 23 of Air Navigation Act.



17. Regulations.

18. Sinhala text to prevail in case of inconsistency.

25 of 2003,

11 of 2004,

11 of 2006,

15 of 2011,

12 of 2012,

12 of 2013,

35 of 2018.

AN ACT to provide for the imposition of a levy on the issue of airline tickets and tickets in respect of a voyage by ship; to repeal the Embarkation Tax Act, No. 19 of 1961 and to amend the Air Navigation Act; to provide for a levy on the turnover of institutions licensed under the Tourist Development Act, No. 14 of 1968; and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: 1st September, 2003]

1. Short title.

This Act may be cited as the Finance Act.


Embarkation Levy

2. Embarkation Levy.

(1) From and after the date of commencement of this Act, there shall be charged and levied a levy to be called the Embarkation Levy calculated in United States Dollars of such amount as the Minister may determine by order published in the Gazette, in respect of—

(a) every airline ticket issued outside Sri Lanka to passengers who. will embark on a flight leaving Sri Lanka or in respect of every airline ticket issued in Sri Lanka to, persons leaving Sri Lanka, the equivalent thereof in Sri Lanka rupees, calculated at such rate of exchange as may be determined by the Competent Authority with the approval of the Secretary to the Treasury:

Provided however, no embarkation levy shall be charged and levied in respect of an airline ticket issued outside Sri Lanka to a transit passenger of that aircraft; and

(b) every ticket issued in respect of a passenger embarking a ship leaving Sri Lanka.

For the purposes of this subsection “transit passenger” means a passenger who departs from Sri Lanka on a connecting flight within twenty-four hours of arrival.

(2) The provisions of subsection (1) shall not apply in the case of—

(a) children who are less than two years of age;

(b) officers and members of the crew of that aircraft or ship;

(c) such other persons as may be prescribed.

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